EghtesadOnline: Iran is to develop four of its oil fields using models based on new oil contracts (IPC). This is the first time the Iranian Petroleum Ministry is using the IPC for its projects.

According to the contracts signed Tuesday in the presence of Petroleum Minister Bijan Zangeneh to enhance the recovery of four oil fields.

The general framework of the contract guarantees increase in the recovery factor of Yaran, Kupal and Marun oil fields as well as Bangestan reservoir. Deputy Petrolum Minister and Head of National Iranian Oil Company (NIOC) Ali Kardor and a number of other officials of Persia Oil And Gas Industry Development Company were present in the signing ceremony of the contracts, reports IRNA.

The contract which values $2.2b was sealed by Deputy Managing Director of National Iranian Oil Company Gholamreza Manouchehri and the Managing Director of Persia Oil And Gas Industry Development Company Naji Sadouni.

Yaran oil field is located 130 km west of Ahvaz in southwestern province of Khuzestan. It is a joint oil reservoir with Majnoon oil field of Iraq.

Speaker of Majlis (Parliament) Ali Larijani has recently communicated new oil contracts model to the government.

According to the spokesman of parliament’s energy commission, Iranian government, in its third draft, considered the concerns of the critics and sympathizers of the establishment; and the board on conformity declared the new oil contract in compliance with upstream regulations.

The Petroleum Ministry with the aim of accelerating the development of oil and gas fields especially the joint ones, has attempted to proclaim new model.

The IPC is a framework that lays out the basic structure - and some details - regarding all future petroleum contracts in Iran. It was earlier announced that the country plans to boost oil production to 5.7 million barrels a day and gas output to 1.4 billion cubic meters a day by 2021.

Iran’s current oil production is estimated to be around 2.8 million barrels per day of which about one million barrels are exported.